How to buy gold bullion in Australia
If you want to buy gold bullion bars in Australia, there are several simple ways to do it, and a number of bullion dealers to choose from. But, first thing first. Let’s focus on how to buy it.
Exchange Traded Funds are risky
When you wish to buy gold bullion bars, there are numerous options you can take. Precious metals Exchange Traded Funds (ETFs) are the cheapest and most convenient way to buy and sell gold and silver. But if you decide on that route, you also expose yourself to counterparty risk. In short, when you buy an ETF, the metal you buy is not held by the ETF provider. It’s held by a large global bank. If the bank collapses, your gold is endangered too. Also, you can’t be sure that they have the gold they claim they do.
What are some of the safer options?
A good thing is to have gold in your hands. We should mention that buying physical gold or silver is more expensive than investing in an ETF. Dealers charge a premium. Then you have the cost of delivery, storage and insurance. And when you sell, your dealer will take a cut. To be quite honest, buying bullion isn’t risk free. But nothing in life is risk free, either. The risk, of course, is that gold and silver prices move continuously and poor timing may cause you to take a loss on an asset if you have to sell for some reason.
Dealing via the Internet
You can buy gold bullion privately online, but it is much riskier than to buy from a registered dealer, so it is not recommended as the safest way. Well-known Australian gold dealers will offer guarantees for the gold and silver that they sell, so you can feel confident and secure by choosing this method of purchase. Prices and transaction methods vary from one dealer to another. Gold Bullion Australia, for example has a state of the art vaulting facility where in order to begin the purchase, you have to open an account with the company.
Opening an account with a company
Opening an account is an easy procedure, you just need to follow the instructions given on our website, or you can go visit us in our Gold Coast or Melbourne showrooms to arrange things in person, if you prefer.
You will need to obtain these documents in order to complete the application and open your account to buy gold and silver bullion:
- Drivers licence or passport
- SMSF (Self Managed Superannuation Fund), trust deed and/or company registration documentation
- For collection and storage account registration, you need to bring the documentation used in opening an account
GBA provides a seamless solution for buying gold bullion, no matter if you are a first time buyer or an experienced investor. “Seamless Solutions” offer many benefits such as: purchase, delivery, fully allocated/segregated bullion storage, insurance and auditing requirements compliant for SMSF in one secure location. This unified process simplifies how to buy gold bullion.
What to buy
Bullion size varies, generally from 1/10 oz (ounces) to 1kg cast bars, so there is a wide choice to select from depending on what is most suitable for your plans and needs. Secure depository is also one of the advantages offered by some registered dealers. Designed to enable you to buy and hold precious metals in a secure vault, the depository is ideal for those who wish to avoid the risk of storing their own gold and silver.
If you want to buy and trade with gold bullion bars, you have plenty of options available, and the team at Gold Bullion Australia is always ready to help you with your product choice and offer benefits you may not have considered.